Beurden of proof

After negative free cash flow in 2016, the energy giant is back in the black. Shell can both comfortably pay shareholders and invest to ensure its survival after demand for oil peaks. The margin for error is welcome – it’s hard to predict how soon crude will fall out of favour.

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Royal Dutch Shell on Feb. 1 announced net profit for 2017 of $13 billion, compared with $4.6 billion in the previous year. The oil major also reported cash flow from operating activities of $35.7 billion, compared with $20.6 billion in 2016.

Shell’s net debt as a proportion of total capital fell to 24.8 percent in the fourth quarter of 2017 from 28 percent a year earlier.

Shell shares were trading in London at 28.16 pounds at 0928 GMT, down 0.3 percent.